8 Sep 2018

Super-neighbourhood centres will outperform market benchmarks of financial performance by engaging local communities. Urbis National Director Matt Cleary explains why to Inside Retail.

A super-neighbourhood centre is defined as around the same size as a subregional centre, but with a tenancy mix more similar to neighbourhood centres with a focus on convenience and specialty retail, fresh food and entertainment, as well as emerging services like work environments and social spaces.

“Our analysis of the emerging super-neighbourhood category shows these centres have the capacity to deliver higher in-store sales through longer and more stable shopping patterns, in turn supporting higher rental growth which, in turn, drives value,” Matthew Cleary said.

Super-neighbourhood centres can bring us back together in a modern town square or market place to meet demand for a real and engaging place.

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“Targeted with the right mix, the super-neighbourhood concept has the capacity to attract not only passing shoppers, it will also command local trade through being a focal point for meeting the widest possible range of needs for its surrounding population.”

Cleary added that centres need to embrace longer and more expanded trading hours to facilitate constant trade throughout the day, and create greater levels of cross shop opportunities to cater of everyday needs.

Shopping centres are increasingly becoming a social space, as well as a place of commerce, and that by designing around this expectation ideally positions super-neighbourhood centres to satisfy the demands of the surrounding community.

“Traditional retail spaces and formats are falling behind, unable to adapt, and unable to meet the modern demands of our retail environment,” Cleary said.

“Super-neighbourhood centres can bring us back together in a modern town square or market place to meet demand for a real and engaging place.”

This article was first published in Inside Retail.